EXHIBIT 99.1

                                  PRESS RELEASE

           Penn Octane Corporation Announces Fiscal Year 2004 Results

                Company Reports Net Income of 12 Cents Per Share


PALM DESERT, Calif.--Nov. 1, 2004--Penn Octane Corporation (NASDAQ: POCC), the
leading supplier of LPG to Northeast Mexico, announced today financial results
for its fiscal year ended July 31, 2004. The Company reported fiscal 2004 net
income of $1.8 million or $0.12 per diluted share versus net income for the
fiscal year ended July 31, 2003 of $2.0 million, or $0.13 per diluted share.
Included in net income for the fiscal year ended July 31, 2004 were
non-recurring expenses associated with the spin-off of Rio Vista Energy Partners
L.P. ("Rio Vista") of approximately $932,000 (approximately $800,000 of
non-recurring expenses associated with the spin-off were included in net income
during the fiscal year ended July 31, 2003) and the loss on the sale of assets
and asset impairment charges totaling $846,000. Proforma net income for the
fiscal year ended July 31, 2004 adjusted for these non-recurring charges was
$3.6 million or $0.23 per share.

Revenues for the fiscal year ended July 31, 2004 were $177.7 million compared
with $162.5 million for the fiscal year ended July 31, 2003. The increase in
revenues during the fiscal year ended July 31, 2004 was primarily due to
increases in average sales prices of LPG and new revenues generated from the
Company's Fuel Sales business that commenced operations in June 2004.

The Company sold and delivered approximately 197.9 million gallons of LPG to PMI
for the fiscal year ended July 31, 2004 versus 211.1 million gallons for the
same period one year earlier. The Company also sold and delivered approximately
49.6 million gallons during the fiscal year ended July 31, 2004 in connection
with the reduction of inventory balances, compared with 56.4 million gallons
during the fiscal year ended July 31, 2003.

The Company expects to file its Annual Report on Form 10-K by November 15, 2004
upon the completion of the independent audit.

J.B. Richter, Penn Octane's CEO, stated "We are excited about our current
business prospects based on the recent completion of the spin-off of Rio Vista
on September 30, 2004, the successful commencement of the Fuel Sales business
and the success our LPG sales to Rio Vista."

About Penn Octane Corp.

Penn Octane historically has been a leading supplier of Liquefied Petroleum Gas
(LPG) to Northeastern Mexico until the recent transfer of its physical assets to
Rio Vista Energy Partners L.P. (Rio Vista). Penn Octane continues to lease a
132-mile, six-inch pipeline which connects


                                  Page 5 of 6

from a pipeline in Kleberg County, Texas, to a terminal facility in Brownsville,
Texas. The Brownsville terminal facility was recently transferred to Rio Vista.
Penn Octane supplies to Rio Vista all LPG which Rio Vista supplies to
Northeastern Mexico. Penn Octane also utilizes a 12-inch propane pipeline which
connects certain gas plants in Corpus Christi, Texas, to its pipeline in Kleberg
County. The Company's network is further enhanced by the 155 miles of pipeline
it has rights to use to transport LPG to and from its storage facility of
500,000 barrels in Markham, Texas, that enhances the company's ability to
deliver LPG to Rio Vista for potential further distribution to Northeastern
Mexico. The Company has recently begun operations of its gasoline and diesel
fuel reseller business. By allocating portions of certain pipeline and terminal
space located in California, Arizona, Nevada and Texas to the Company, the
Company is able to sell gasoline and diesel fuel at rack loading terminals and
through bulk and transactional exchanges.

Forward-Looking Statements

Certain of these statements in this news release are forward-looking statements,
including statements related to the Spin-Off, the LPG business and the gasoline
and diesel fuel reseller business. Although these statements reflect the
company's beliefs, they are subject to uncertainties and risks that could cause
actual results to differ materially from expectations. These risks include lower
than expected demand for the company's products and the ability of the company
to continue to receive allocation of pipeline and terminal space. In addition,
there is a risk that the company may not be able to obtain adequate financing to
finance the purchase of its products or obtain the required permits. If the
company is not able to obtain adequate financing or to continue to generate
sales of its products at profitable levels, the company would suffer material
adverse consequences to its LPG and/or reseller business which would adversely
impact the company's financial condition and results of operations. Additional
information regarding risks affecting our business may be found in our most
recent reports on Form 10-Q and Form 10-K and the Rio Vista Form 10 filed with
the Securities and Exchange Commission.


- -------------------------------------------------------
Contact:
     Penn Octane Corp.
     Richard Shore or Ian Bothwell, 760-772-9080
     or CEOcast, Inc. for Penn Octane
     Ed Lewis, 212-732-4300

- -------------------------------------------------------


                                  Page 6 of 6